So in 2020, someone is unemployed and files a claim for 2020. EDD delays payment for the 2020 claim and then finally gets around to paying the 2020 unemployment benefit, but due to know fault of the taxpayer they aren't given the payment until 2021. The person is expected to lose the exclusion benefit and is subject to the full taxable income in 2021, even though it had nothing to do with them and they should have received the money in 2020 and had been able to exclude $10,200 from being taxable. Sure doesn't seem right.
